Global Residential Heat Pump Market Size, Share & Industry Trends Analysis Report By Power Source (Electric Powered and Gas Powered), By Type (Air Source, Geothermal, and Water Source), By Regional Outlook and Forecast, 2022 - 2028
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Get in-depth analysis of the COVID-19 impact on the Residential Heat Pump Market
Market Report Description
The Global Residential Heat Pump Market size is expected to reach $53 billion by 2028, rising at a market growth of 9.0% CAGR during the forecast period.
Residential heat pumps are external units that are a part of heating and cooling systems. It can cool down home just like an air conditioning unit, but it can also heat it. A residential heat pump absorbs heat from chilly outdoor air and transmits it within the winter, and it removes heat from inside air to cool the home in the summer. They require electricity to run and transfer heat via refrigerant to keep them comfortable all year.
Homeowners may not need to construct separate heating and cooling systems because they can handle both. For improved functionality in colder locations, an electrically heated strip can be attached to the interior fan coil. Residential heat pump, unlike furnaces does not use fossil fuels, giving them more environmentally sustainable.
The reverse cycle chiller (RCC) design, unlike conventional residential heat pump, pumps water instead of air, allowing it to run more efficiently in cold conditions. The residential heat pump in an RCC system is connected to an enclosed water tank, which either heats or cools. The heated or cooled air is then pumped away from the tank and into the ductwork with one or more warming zones through a fan and coil system. An RCC system can also circulate hot water via a radiant floor heating system, so user can thank RCC for keeping bare feet warm on a toasty tile floor this winter.
Heat pumps come in a variety of shapes and sizes, but they all work on the same basic principle, heat transmission. Instead of burning fuel to generate heat, the device transfers heat from one location to another. There's a secret to making it all work. Thermodynamics states that heat typically moves from high-temperature regions to low-temperature regions. A heat pump uses a tiny quantity of electricity to reverse that process, extracting heat from a low-temperature area and pumping it to a higher-temperature location. As a result, heat is transported from a "heat source" such as the ground or air to a "heat sink" such as a home.
COVID-19 Impact Analysis
Several countries in the world have implemented state-wide lockdowns to stop the virus from spreading further, resulting in a slowdown in the international economy. COVID-19 has adversely affected both the manufacturing and services industries. The pandemic has sparked profound recessions, according to the World Bank, and is projected to have a long-term effect on the international economy due to a drop-in investment and interruptions in international trade and supply chains. The suspension of manufacturing activity and the decline in economic activity for commercial services in 2020 hampered the growth of the residential heat pump industry.
Market Growth Factors
Residential Heat Pump Technology’s Contribution to Carbon Reduction
Energy is a vital source of power in many places, including homes, hospitals, and schools. However, its manufacturing and use result in considerable amounts of greenhouse gas emissions. As a result, major economies throughout the world are attempting to minimize their reliance on non-renewable sources of energy and are gradually shifting toward alternative energy sources to reduce greenhouse gas emissions. Residential heat pump technology has the potential to reduce greenhouse gas emissions. Residential heat pump, which use aerothermal and geothermal technology is a cost-effective way to heat a room.
Integration of IOT and Other Sophisticated Technologies with Residential Heat Pump
Real-time surveillance, predictive management, and remote diagnostics of components are all possible with Internet of Things (IoT)-based residential heat pump. Smart thermostats in the Internet of Things (IoT)-based residential heat pump help monitor environmental changes and interact with their water heater equipment. Residential heat pump is rapidly being used by end customers from many industries. However, they continue to operate and have the same designs. For ease of operation, automation and distant operations have been primary considerations in the development of next-generation residential heat pump. Residential heat pump now comes with LCD screens and warning lights to make them more user-friendly.
Market Restraining Factors
In emerging economies, there is a Lack of Understanding of the Benefits of Residential Heat Pump
The residential heat pump is a technically challenging piece of equipment. End users in emerging and undeveloped economies have a limited understanding of the fuel efficiency, cost-effectiveness, and environmental benefits connected with residential heat pump, as well as technical know-how. This aspect is likely to limit their penetration in emerging markets. As reported by the United Nations Environment Program, contractors are unaware of ISO regulations for residential heat pump. In order to ensure the safety and quality of our products and services, ISO standards are crucial.
Power Source Outlook
Based on the Power source, the Residential heat pump Market is divided into Electric Powered, and Gas Powered. The electric powered segment procured the largest revenue share in the residential heat pump market in 2021. It is because electric-powered domestic residential heat pump is simple to operate and require electricity to run that has contributed to the growth of this sub-segment. As a result, the possibility of dangerous gas creation is completely minimized during the process. The domestic heat pump is both environmentally benign and cost-effective.
On the basis of Type, the Residential heat pump Market is segmented into Water Source, Geothermal, Air Source. The water source segment witnessed a significant revenue share in the residential heat pump market in 2021. It is Due to its superior operational efficiency when compared to other alternative residential heat pump. A residential heat pump that uses water to capture thermal energy and convert it to heat is known as a water source residential heat pump. The fundamental benefit of a water source residential heat pump is that it may work on the water with a lower temperature than the surrounding air.
|Market size value in 2021||USD 29.6 Billion|
|Market size forecast in 2028||USD 53 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 9% from 2022 to 2028|
|Number of Pages||169|
|Number of Tables||254|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Power Source, Type, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Region wise the Residential heat pump market is analyzed across North America, Europe, Asia pacific, and LAMEA. The Asia Pacific region garnered the highest revenue share in the residential heat pump market in 2021. Due to the colder temperatures in most parts of the region, demand for home residential heat pump has increased, contributing to this increase. Government initiatives are being taken to reduce air pollution caused by traditional energy sources used for heating in households, commercial buildings, and industries.
Free Valuable Insights: Global Residential Heat Pump Market size to reach USD 53 Billion by 2028
KBV Cardinal Matrix - Residential Heat Pump Market Competition Analysis
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Midea Group Co., Ltd. is the forerunners in the Residential Heat Pump Market. Companies such as Daikin Industries, Ltd., Johnson Controls International PLC,, Mitsubishi Electric Corporation and Carrier Global Corporation are some of the key innovators in Residential Heat Pump Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Johnson Controls International PLC, Mitsubishi Electric Corporation, The Danfoss Group, Daikin Industries, Ltd., Carrier Global Corporation, Midea Group Co., Ltd., NIBE Industrier AB, Viessmann Group, Stiebel Eltron GmbH & Co. KG, The Glen Dimplex Group
Strategies Deployed in Residential Heat Pump Market
» Partnerships, Collaborations and Agreements:
- Jun-2020: Midea joined hands with Hiconics, a large manufacturer of industrial frequency converters. Through this collaboration, Midea would leverage Hiconics' high voltage, low voltage frequency converters, and servo drives to simplify its manufacturing lines. Additionally, Hiconics would help Midea reach its purpose of obtaining the Internet of Things and artificial intelligence for manufacturing.
» Product Launches and Product Expansions:
- May-2022: Midea introduced the new Midea EVOX central inverter heat pump system, adaptable and developed product solutions. Midea EVOX central inverter heat pump is one of the most consistent inverter technology outcomes in the market for single or various-zone applications, in spite having some of the highest energy rankings, with very affordable price, making it simple for contractors and distributor to sell, stock, and install a admirable HVAC option. Additionally, the company aimed to launch an elevated experience in houses to fulfill the developing SEER norms, without counting extreme price obligation to customers.
- Mar-2022: Mitsubishi Electric expanded its prevailing P-Series Hyper-Heating INVERTER heat pump outdoor units for light commercial applications. The new expansion delivers large effective and premium version with enhanced heating ability at very less ambient requirements, distinctive by others in the industry. Additionally, H2i P-Series is a Hot Start function ensures warm air flow from the start, which is crucial in cold climate states where heating performance actually matters.
- Mar-2022: Daikin North America expanded its Daikin Fit systems by introducing heat pump systems. The new heat pump systems combine the most suitable elements and performance of ductless-style heat pump systems with the capability to attach to conventional ducted systems. However, the heat pump delivers the benefits of high-performing inverter compressors with cabinet structures that are miniature, lightweight, and softer than standard unitary outdoor heat pump products.
- Dec-2021: Mitsubishi Electric unveiled Ecodan Hydrodan, a new highly efficient, water-to-water heat pumps for the multi-house market. The Ecodan Hydrodan offers a comprehensive plug & play solution specially developed to deliver hot water in residential flats and to bankroll on the important sustainable energy capability the next generation of heat networks provide. Additionally, Ecodan Hydrodan also functions with a low amount of low-GWP R32 refrigerant.
- Dec-2021: Daikin introduced R-32, a refrigerant with one-third of the Global Warming Potential. The new R-32 refrigerant is a single zone, a ductless design that achieves unique capabilities over its R-410A prototype line, the LV Series, up to 13.8 HSPF, 27.4 SEER, and 16.3 EER grade for ultra-effective heating and cooling.
- Nov-2021: Daikin Europe launched the Daikin Altherma 3 H MT, a mid-temperature hydrosplit heat pump. The heat pump offers quieter and has more useful performance than ever, with the help of Daikin Japan and Daikin Europe. In Addition, an prolong of Daikin’s actual heat pump capacity fits in completely with Daikin’s mission to assist decarbonize Europe and its idea to establish a heat pump in every European residence.
- Oct-2021: Mitsubishi Electric Trane HVAC introduced the Heat2O, a CO2 heat pump water heater. The new Heat20 can deliver hot water with temperatures up to 176°F in one stage. Additionally, Heat2O structure is modular, and up to 16 units can be merged to permit for capabilities between 40kW and 640kW. The Heat2O is developed as a self-sufficient outdoor unit with scroll inverter and compressors technology.
- Aug-2021: Johnson Electric unveiled a high-power electric compressor that can effectively decrease the heat caused by the battery during high-rate fast charging of electric vehicles. The new electric compressor has been enhanced by more than 67% whereas the voltage is up to 900V and the displacement is up to 57cc. Additionally, the high-power electric compressor is equipped with a new era of super-fast charging vehicles.;
- Nov-2020: Daikin unveiled Daikin’s Altherma 3 M, the company’s first monobloc heat pump. The Daikin’s Altherma 3 M utilizes R-32 refrigerant and is more consolidated, combined, and endurable than its ancestors. The heat pump can be managed remotely through the newly updated Daikin Residential Controller application with a voice assistant element. Moreover, R-32 refrigerant delivers higher performance and energy abilities, while decreasing CO2 discharge.
- Jul-2020: Viessmann launched a Vitocal 100-A air source heat pump, packed and developed for installation into the standard British heating system. The Vitocal 100-A measures 377 to 455 mm in deep, 924 to 1047 mm in diameter, and 828–1409 mm in height, relying on the outcome.
- May-2020: Carrier unveiled the Carrier Infinity 26 air conditioner and the Carrier Infinity 24 heat pump, which provide both cooling and heating abilities. The new flagship products deliver superior energy effective for endless savings on cooling and heating expenses along with performance-based refunds.
- Apr-2020: Nibe introduced the S-series, a new generation of heat pumps. The S-series offers voice assistants and alerts signals through email and push-message, permitting user to react fast from smartphone, as well as run diagnostics remotely. In Addition, the S-series provides products loaded with smart technology that quickly become a genuine part of smart residence.
» Acquisition, Joint Venture and Merger:
- May-2022: NIBE Industrier signed an agreement to acquire 50% of the shares of Argoclima, a company focused on both climate and wellness. This acquisition would provide NIBE with a remarkably powerful standing in the quick growing Italian industry for heat pumps by integrating Argoclima's existing scope under the Argo label with the complete heat pump capacity marketed under the NIBE label.
- Aug-2021: NIBE Industrier AB signed an agreement to acquire 50% of the shares of Go Geothermal, an independent owner-operated renewable heating supplier based in the UK. Through this acquisition, NIBE would reinforce its standing in the quickly developing British industry for heat pumps.
- Jun-2020: Johnson Controls took over East Lancashire Refrigeration along with H&C Contracts and McDowall Air Conditioning. Through this acquisition, the company aimed to strategic development program within the HVAC segment, permitting the enterprise to transform its product offering and serving geographical benefit openings within the United Kingdom and Ireland.
» Geographical Expansions:
- May-2022: Mitsubishi Electric expanded its geographical footprints by establishing Production Capacity at A/C Base in Turkey. The expansion would extend MACT's annual ability for air-to-water heat pumps to 300,000 units, up by 100,000 units from the existing abilities, and room air conditioners to 1,100,000 units, up by 300,000 units.
Scope of the Study
Market Segments Covered in the Report:
By Power Source
- Electric Powered
- Gas Powered
- Air Source
- Water Source
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Johnson Controls International PLC
- Mitsubishi Electric Corporation
- The Danfoss Group
- Daikin Industries, Ltd.
- Carrier Global Corporation
- Midea Group Co., Ltd.
- NIBE Industrier AB
- Viessmann Group
- Stiebel Eltron GmbH & Co. KG
- The Glen Dimplex Group
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North America Residential Heat Pump Market Report 2022-2028
Europe Residential Heat Pump Market Report 2022-2028
Asia Pacific Residential Heat Pump Market Report 2022-2028
How valuable will the residential heat pump market be in the future?
The global residential heat pump market size is expected to reach $53 billion by 2028.
What are the key driving factors and challenges in the residential heat pump market?
Residential Heat Pump Technology’s Contribution to Carbon Reduction are driving the market in coming years, however, In emerging economies, there is a Lack of Understanding of the Benefits of Residential Heat Pump limited the growth of the market.
What are the major top companies in the competitive landscape?
Johnson Controls International PLC, Mitsubishi Electric Corporation, The Danfoss Group, Daikin Industries, Ltd., Carrier Global Corporation, Midea Group Co., Ltd., NIBE Industrier AB, Viessmann Group, Stiebel Eltron GmbH & Co. KG, The Glen Dimplex Group.
Which segment is leading the market in 2021?
The Air Source market is leading the Global Residential Heat Pump Market by Type in 2021, thereby, achieving a market value of $40.6 billion by 2028.
Which region shows the high growth rate of the residential heat pump market in 2021?
The Asia Pacific market region shows high growth rate in the Global Residential Heat Pump Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $24.1 billion by 2028.